Shanghai stocks are up again today after a mid-week hiccup in
Beijing’s stock market rescue efforts. But the volatility seen in
the market and now in fund flows, is leading to potentially
dangerous instability.

In what looks like a paradigm shift in foreign investor
assessment of risk in Chinese stocks ANZ’s Goh said (emphasis
ours):

The volatility in e Chinese equity market is certainly
resulting in big moves in investor flows. In the past
few months, flows in and out of China equity funds have been
between -2% and 4% of AUM, compared to the normal
range of -1% to 1% previously.